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Foundations of Macroeconomics ch 2 - Buzz Surrounds Apple

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
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

        


!"
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 !"##$

       "## 

#"$%&
'()*+$ 
 &&$  +
$
%&
        ' 
  
'

, -$&  ".
  -  "     "
"$    $      #
,///*(0/1,//2*('0/
3&    $  what* how*   for whom
"$&
What( 
%
         
)
How(%  
*
For whom(+
 
        

4    
 $  "
     $" $
5  
     
  '
© 2013 Pearson Education, Inc. Publishing as Addison Wesley
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

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



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, #
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
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Financial Times*$2*,//:
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1919
      8    
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 19        
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"$  #    $ $ #
$

3
© 2013 Pearson Education, Inc. Publishing as Addison Wesley
© 2013 Pearson Education, Inc. Publishing as Addison Wesley

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Buzz surrounds Apple's iPhone. Can you explain: Why doesn't Apple manufacture the iPhone at its own factory in the United States? Apple wants to manufacture the iPhone at the lowest possible cost. It would be more expensive for Apple to manufacture the iPhone at its own factory in the United States because Apple does not have the expertise possessed by its subcontractors and because the wages Apple would need to pay U.S. workers exceed the wages its subcontractors need to pay their workers. Why doesn't Apple offer a cheaper version of the iPhone with no camera? Apple has determined that it is more profitable to include a camera in all iPhones than to sell a version without it. According to the table in the textbook, the camera's cost is only $11. For Apple to sell an iPhone without a camera and make the same profit as it does with its current iPhones, Apple could cut the price by only $11, which would bring Apple a vanishingly small increase in sales. In view of the cost of producing an iPhone (in the table on p. 41), why do you think the price of an iPhone is so high? What other costs must be incurred to bring the iPhone to market other than the cost of manufacturing it? Major costs not included in the table are marketing and distribution costs as well as research and development costs. The marketing costs for the iPhone, such as advertising and other promotions, are high. The distribution costs of the iPhone also are high. Apple also incurs significant costs to develop a ...
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